The government has submitted a Legislative Instrument (LI) to Parliament that would require all future power generation contracts to undergo competitive bidding.
This move aims to tackle inefficiencies in Ghana’s energy sector and improve transparency in power procurement.
Minister of Finance, Dr. Cassiel Ato Forson, announced the development on April 23, 2025, during a session on the Ghana Energy Compact under Mission 300, organized by the World Bank in Washington.
“We have submitted the LI to Parliament to make competitive procurement of power plants the standard approach,” Dr. Forson said. “If we are serious about fixing the deep-rooted problems in the energy sector, this is a necessary step.”
Dr. Forson described the energy sector as the country’s most pressing economic challenge, citing a current financial shortfall of about $2 billion.
He attributed the gap to inefficiencies across the energy value chain, particularly at the Electricity Company of Ghana (ECG).
“ECG alone could reduce the shortfall by half if it addressed its internal challenges,” he stated. “We cannot continue to pass these losses on to consumers.”
The proposed LI aims to introduce more discipline into the procurement process and prevent the cost of mismanagement from falling on the Ghanaian public through increased tariffs and levies.
Dr. Forson urged Parliament to treat the passage of the LI with urgency, noting that the success of the Ghana Energy Compact depends on swift and deliberate action. “Time is of the essence,” he added.